3 Mistakes Entrepreneurs Make When Defining their Target Market

The #1 issue I find most businesses have, is knowing exactly who your core customer is, and then focusing your resources to provide profitable solutions to meet their demands. It's the #1 challenge.

But, businesses that are able to do this effectively will find exponential success, and those who don’t, well they will find themselves in an endless circle of failure.

It's All About a Target

Let’s say you have the perfect solution that you absolutely love. You love being apart of this type of business. You have all of these goals and aspirations about how much youwant to make and what you want….. but the business fails. What went wrong?

Notice how many times I used the word "YOU". The issue is business is about your Target Market, not you. After all, they are the ones paying your bills!

Think About It........

So let me ask you a question:

How many of you would love to sell your products and solutions to everyone that existed?

• Absolutely you might say, but we all know this is not realistic .... Why?
  • Not everyone wants the same thing
    • What works for one group may not work for another 
  • Not everyone could afford the product
  • Not everyone could have access to the product
    • There are some foods in Italy I would absolutely love to have, but I do not have access to them because they are only available in Italy

Here's another question: How many of you would love to blast your brand all over every media outlet possible?

• Why is this not realistic?
  
  • Company resources are limited
  • Cannot afford to be on every platform, every hour of the day
    • Even Apple has a limited marketing budget

This is why we define a Target Market.

Our resources are limited, so we need to define exactly who the groups of people who are most likely to use our brand.

Target Market - The group of customers who are MOST likely to make a purchase from your brand. 

Now will there be people outside of your target market who will buy from you...Absolutely, let them in. The more the merrier. 

When you define a target market, we are not saying you can only sell to this group of people. You will sell to anyone who is willing to do business with you. What we are saying is what group is most likely to make a purchase, what group will be most profitable, and let's focus our resources on these individuals as we grow our business. We define a target market to maximize our limited resources and focus on the path of least resistance.                       

Common Targeting Traps:

Now that we know what a target market is, here are 3 of the most common traps entrepreneurs make when defining their target market.

1. Not understanding different groups of people have different needs.
• These different needs often conflict with one another
• So in your attempt to satisfy everyone, because of conflicting needs, you end up satisfying no one
2. Your resources are limited, you do not have the funds to cater to everyone.
• You cannot afford to advertise to everyone, nor make solutions for everyone
• If you cater to groups outside of your core target, you spread resources thin risking a loss in profitability.
3. Trying to attract everyone
• Your brand loses focus if you try to be everything to everyone; no one will know what you are
• It becomes too complicated
• And you end up confusing your core audience, possibly loosing them

Target Market Recap 

• • Your resources are limited, who are the core group of people who are MOST likely to buy from your brand
  • Path to least resistance - these are the easiest customers to obtain
  • You are willing to pay money to attract this group because it will result in a profit
  • Your goal is to then focus your efforts to create profitable solutions and messages towards this group

So How do you define your target market? 

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